Kenyan Bank set to enter Ethiopian market
The Co-Operative Bank of Kenya (CBA) has announced it is ready to enter the Ethiopian market through a joint venture with Ethiopian banks.The Co-Operative Bank of Kenya (CBA) has announced it is ready to enter the Ethiopian market through a joint venture with Ethiopian banks.
It said in a statement that it is not only planning to expand in Tanzania, but also in Uganda, and is looking to invest about 20 million dollars (€14.8 million) to achieve this.
Group Managing Director, Gideon Muriuki said: "Our South Sudan subsidiary started operations in September 2013 and is expected to contribute positively to our profitability from June this year. Ethiopia and Uganda are now the new frontiers."
Ethiopia's financial market is normally closed to foreigners, recalls newspaper Addis Fortune. However, it has signed a special agreement with Kenya that provides preferential treatment to investors in each other's territories, which is expected to allow the CBA to launch in Ethiopia.